Tencent Music Entertainment beats quarterly revenue estimates

(Reuters) -Tencent Music Entertainment topped estimates for quarterly revenue on Tuesday as its paid subscriber base grew across its music streaming platforms, sending its U.S. listed shares up 2.4% in premarket trading.

The company’s targeted promotions have helped it cultivate a strong base of long-term paying customers.

Tencent Music has ventured into multi-channel promotions through telecom operators as well as e-commerce and video platforms, which has broadened its user reach.

Its online music unit posted a 27.7% revenue rise in the second quarter, which partly offset a 42.8% slump in revenue at its social entertainment segment.

Total revenue of the Tencent Holdings-controlled company fell to 7.16 billion yuan ($998.59 million)in the second quarter. Analysts were expecting revenue of 7.14 billion yuan, according to LSEG data.

($1 = 7.1701 Chinese yuan renminbi)

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Alan Barona and Arun Koyyur)